Benefits After Termination - Miller Thomson

Benefits After Termination

Ashley Mitchell 604.643.1274 mmitchell@

Benefits After Termination

? Unless a written employment contract says otherwise (and absent just cause), employees are entitled to reasonable notice of termination.

? Reasonable notice is based on: the employee's age, length of service, position and the availability of similar employment.

Benefits After Termination (cont.)

? For a severance package to comply with the requirements of reasonable notice, it must put the employee in the same position he or she would have been in, had the contract of employment been performed according to its terms.

Benefits After Termination: Risks to Employers

? If an employer fails to provide reasonable notice, it is liable to an employee for all damages suffered as a result. This includes:

? Value of lost salary; and

? Value of lost benefits and/or out of pocket expenses incurred by the employee

during the notice period.

Benefits After Termination: Risks to Employers (cont.)

? Claims for lost benefits during the notice period may relate to:

? Medical and dental benefits; ? Short Term and Long Term Disability; ? Life insurance; ? Pension or RRSP contributions; ? Equity compensation; ? Car allowances / company vehicles; and ? Vacation pay, etc.

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